DTCC: The Safety Of The Financial Marketplace Could Be Jeopardized By Blockchain

The Depository Trust and Clearing Corporation (DTCC) issues a report that we are going to take a look further in today’s crypto news.

According to their report, the DTCC analyses the stability of the global financial system and has been doing that since 2013. A short description of the reports states:

 “The DTCC Systemic Risk Barometer Survey serves as an annual pulse check to monitor existing and emerging risks that may impact the safety, resiliency, and stability of the global financial system. It is designed to help identify trends and foster industry-wide dialogue on potential threats to financial stability.”

This year’s report from Stephen Scharf, DTCC’s Chief Security Officer notes:

 “The increase in concern around fintech’s impact on systemic risk demonstrates a growing awareness of the potential risk and highlights the need to evaluate both risks and rewards associated with fintech initiatives. DTCC embraces the promise that fintech innovations hold to further mitigate risk and reduce post-trade costs. But as the industry continues to adopt fintech innovations, like blockchain, AI and cloud solutions, we must ensure that those innovations do not jeopardize the safety and security of the current global financial marketplace.”

There is no real explanation of how the blockchain can jeopardize the financial marketplace and how it can deter from its original purpose which is to stabilize and decentralize the systems that fail to achieve their purpose.

Other metrics are included in the report as well such as the number of people who view the blockchain as a systematic risk to finance is down by 8 percent since 2017.